MIRA
INFORM REPORT
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Report No. : |
308171 |
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Report Date : |
20.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
BHAGIRADHA CHEMICALS AND INDUSTRIES LIMITED |
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Registered
Office : |
8-2-269/S/3/A, Plot No.3, Sagar Society, Road No.2, Banjara Hills, Hyderabad-500034, Telangana |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
07.07.1993 |
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Com. Reg. No.: |
01-015963 |
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Capital
Investment / Paid-up Capital : |
Rs.50.783 Millions |
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CIN No.: [Company Identification
No.] |
L24219AP1993PLC015963 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDB00946B/HYDB01676D |
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PAN No.: [Permanent Account No.] |
AAACB9723G |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer, Exporter and Importer
of high quality Basic Pesticides |
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No. of Employees
: |
350 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
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Rating |
Long Term Rating = BBB- |
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Rating Explanation |
Have moderate degree of safety and carry moderate credit risk |
|
Date |
14.10.2014 |
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Rating Agency Name |
CRISIL |
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Rating |
Short Term Rating = A3 |
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Rating Explanation |
Have moderate degree of safety and carry higher credit risk |
|
Date |
14.10.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION PARTED BY
|
Name : |
Mr. Rajendra Prasad |
|
Designation : |
Finance Head |
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Contact No.: |
91-40-23608083 |
|
Date : |
13.02.2015 |
LOCATIONS
|
Registered Office/Head Office : |
8-2-269/S/3/A, Plot No.3, Sagar Society, Road No.2, Banjara Hills, Hyderabad-500034, Telangana, India |
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Tel. No.: |
91-40-2360808323541344 |
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Fax No.: |
91-40-23540444 |
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E-Mail : |
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Website : |
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Factory : |
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Tel. No.: |
91-8592-231311 |
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Fax No.: |
91-8592-231412 |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. D. Ranga Raju |
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Designation : |
Chairman |
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Date of Birth/Age : |
20.06.1934 |
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Qualification : |
Graduate in commerce |
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Experience |
Has extensive experience in manufacturing and marketing of
agricultural chemicals |
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Date of Appointment : |
04.03.1995 |
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DIN: |
00066546 |
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Other Directorship : |
· Vijaynagar Biotech Limited · Nagarjuna Agrichem Limited ·
Nagarjuna Oil Refinery Limited |
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Name : |
Mr. K. S. Raju |
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Designation : |
Director |
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Date of Birth/Age : |
29.06.1950 |
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Qualification : |
Graduate in Mechanical Engineering from the University of Mysore |
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Experience |
Industrialist having rich business experience in managing various industrial enterprises |
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Date of Appointment : |
29.07.2005 |
|
DIN: |
00008177 |
|
Other Directorship : |
·
Nagarjuna Fertilizers and Chemicals Limited ·
Nagarjuna Oil Corporation Limited ·
Jaiprakash Engineering and Steel Company Limited ·
Nagarjuna Agrichem Limited ·
Nagarjuna Oil refinery Limited ·
New India Finance Limited |
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|
Name : |
Mr. Sudhakar Kudva |
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Designation : |
Director |
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Date of Birth/Age : |
06.12.1950 |
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Qualification : |
Fellow Member of the Institute of Chartered Accountants of
India. |
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Experience |
Highly experienced in various senior positions and his
experience includes International Trading and Contracting, Financial
Services, Manufacturing of alloy and carbon steel, seamless tubes, Mining,
Port operations and Logistics. His areas of experience include Accounting,
Financial Management, Treasury Management and General Management. |
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Date of Appointment : |
31.10.2010 |
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DIN: |
02410695 |
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Other Directorship : |
Nagarjuna Agrichem Limited Nagarjuna Oil Refinery Limited |
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Name : |
Mr. S. Chandrasekhar |
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Designation : |
Managing Director |
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Date of Birth/Age : |
19.12.1977 |
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Qualification : |
B.Tech from Osmania university Master’s Degree in Chemical
Engineering from the University of Illinois, Chicago |
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Date of Appointment : |
27.07.2010 |
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Other Directorship : |
1. Rite information services Private Limited 2. JC Biotech Private limited |
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Name : |
Mr. D. Sadasivudu |
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Designation : |
Director |
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Name : |
Mr. S. Lalit Shri |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajendra Prasad |
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Designation : |
Finance Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2014
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
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|
1178474 |
23.32 |
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|
1178474 |
23.32 |
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Total shareholding of Promoter
and Promoter Group (A) |
1178474 |
23.32 |
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(B) Public Shareholding |
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|
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|
2435086 |
48.18 |
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|
893769 |
17.69 |
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|
502024 |
9.93 |
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|
44347 |
0.88 |
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|
28402 |
0.56 |
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|
15945 |
0.32 |
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|
3875226 |
76.68 |
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Total Public shareholding (B) |
3875226 |
76.68 |
|
Total (A)+(B) |
5053700 |
100.00 |
|
(C) Shares held by Custodians and
against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
5053700 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Importer
of high quality Basic Pesticides |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
·
France ·
China ·
US ·
Australia ·
Israel ·
New Zealand |
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Imports : |
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Products : |
Raw Material |
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Countries : |
·
China ·
US ·
Taiwan |
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Terms : |
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Selling : |
Cash, L/C and Credit |
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Purchasing : |
Cash, L/C and Credit |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
Wholesalers, Retailers and Fend Users
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No. of Employees : |
350 (Approximately) |
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Bankers : |
· State Bank of India ·
Axis Bank Limited ·
Bank of India |
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Facilities : |
Note: Long-term
Borrowings The Term Loan is secured by Exclusive charge on fixed assets created out of term loan and second charge on the fixed assets of the Company (both present and future) by way of hypothecation of movable fixed assets and equitable mortgage of immovable fixed assets of the company and personal guarantee of Shri S. Chandra Sekhar Managing Director of the company. Government of Andhra Pradesh vide letter No.20/2/6/1369/ID dated 08-10-1996 and letter No.30/1/2002/0300/ 0300/FD dated 10-04-2002 had sanctioned sales tax deferment for an amount of Rs. 91.854 Millions and Rs. 51.451 Millions respectively for a period of 14 years to the company in respect of chlorpyriphos plant. The sanction of Rs. 91.854 Millions under letter No.20/2/6/1369/ID dated 08-10-1996 has expired its utilization on 28th February, 2010. The company has commenced the repayment and has paid Rs. 5.525 Millions utilized till 1999-2000. Sales tax amounting to Rs. 0.672 Millions for the year ended 31-03-2014 (Previous Year Rs. 5.222 Millions) deferred during the year. Short-term
borrowings: The working capital facilities are secured by
hypothecation of the current assets of the company and further secured by a
first charge on the fixed assets of the company (excluding fixed assets
created out of term loan sanctioned by Bank of India), second charge on fixed
assets created out of term loan sanctioned by Bank of India and are
personally guaranteed by Shri S.Chandra Sekhar Managing Director, Smt. S.
Ratna Kumari and Smt. S. Lalitha Sree relatives of Shri S. Chandra Sekhar
Managing Director of the company. |
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Auditors : |
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Name : |
R. Kankaria and
Uttam Singhi Chartered Accountantss |
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Address : |
Hyderabad - 500082, Telangana, India |
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Cost Auditors : |
Sagar and Associates, Cost Accountants |
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Address : |
Hyderabad - 500001, Telangana, India |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Related Parties : |
Nagarjuna Agrichem Limited |
CAPITAL STRUCTURE
After As on:
11.08.2014
Authorized Capital: Rs. 60.000
Millions
Issued, Subscribed Paid-up Capital: Rs. 53.537 Millions
As on 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6000000 |
Equity shares |
Rs.10/- Each |
Rs.60.000 Millions |
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Issued, Subscribed:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5102800 |
Equity shares |
Rs.10/- Each |
Rs.51.028
Millions |
|
|
|
|
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Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5053700 |
Equity shares |
Rs.10/- Each |
Rs.50.537
millions |
|
|
Add : Share Forfeited |
|
Rs.0.246
Million |
|
|
Total |
|
Rs.50.783 Millions |
Details of Shares held by each Shareholder holding more than 5% shares
|
Class of Shares / Name of Shareholders |
Number of Shares Held |
% of Holding In that class of Shares |
|
Equity shares with Voting rights |
|
|
|
Royal Touch Multitrade Pvt Ltd |
734,100 |
14.53 |
|
Nagarjuna Impex Limited |
396,600 |
7.85 |
|
Siltex India Limited |
290,600 |
5.75 |
Details of Forfeited
Shares
|
Class of Shares |
Number of Shares Held |
Amount originally paid up |
|
Equity Shares with Voting Rights |
49,100 |
245,500 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
50.783 |
50.783 |
50.783 |
|
(b) Reserves & Surplus |
428.026 |
414.324 |
394.607 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
478.809 |
465.107 |
445.390 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
127.681 |
40.110 |
37.102 |
|
(b) Deferred tax liabilities (Net) |
30.334 |
25.553 |
17.978 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
158.015 |
65.663 |
55.080 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
384.442 |
344.048 |
227.094 |
|
(b)
Trade payables |
341.110 |
296.153 |
144.906 |
|
(c) Other
current liabilities |
48.913 |
70.907 |
6.756 |
|
(d) Short-term
provisions |
5.972 |
2.566 |
15.982 |
|
Total Current
Liabilities (4) |
780.437 |
713.674 |
394.738 |
|
|
|
|
|
|
TOTAL |
1417.261 |
1244.444 |
895.208 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
475.446 |
347.396 |
309.395 |
|
(ii)
Intangible Assets |
0.205 |
0.426 |
0.647 |
|
(iii)
Capital work-in-progress |
92.825 |
124.007 |
29.268 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
35.923 |
35.112 |
42.332 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
604.399 |
506.941 |
381.642 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
323.026 |
268.588 |
228.305 |
|
(c)
Trade receivables |
339.292 |
354.832 |
185.730 |
|
(d) Cash
and cash equivalents |
12.116 |
27.285 |
31.079 |
|
(e)
Short-term loans and advances |
137.337 |
86.454 |
67.775 |
|
(f)
Other current assets |
1.091 |
0.344 |
0.677 |
|
Total
Current Assets |
812.862 |
737.503 |
513.566 |
|
|
|
|
|
|
TOTAL |
1417.261 |
1244.444 |
895.208 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1730.102 |
1461.454 |
684.108 |
|
|
|
Other Income |
19.986 |
2.351 |
2.029 |
|
|
|
TOTAL (A) |
1750.088 |
1463.805 |
686.137 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw Materials Consumed |
1242.420 |
1051.386 |
518.452 |
|
|
|
Changes in inventories of finished goods, Stock-in progress and Stock-in-Trade |
(28.935) |
(75.219) |
(65.539) |
|
|
|
Employee benefits expense |
85.465 |
65.824 |
50.094 |
|
|
|
Extraordinary Items |
0.000 |
0.000 |
(6.253) |
|
|
|
Other expenses |
338.235 |
320.832 |
179.673 |
|
|
|
TOTAL (B) |
1637.185 |
1362.823 |
676.427 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
112.903 |
100.982 |
9.710 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
43.150 |
35.091 |
24.076 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
69.753 |
65.891 |
(14.366) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
48.103 |
36.820 |
29.705 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
21.650 |
29.071 |
(44.071) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2.035 |
9.354 |
(15.888) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
19.615 |
19.717 |
(28.183) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (J) |
334.050 |
314.333 |
342.516 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General Reserve |
5.000 |
0.000 |
0.000 |
|
|
|
Dividend |
5.054 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
0.859 |
0.000 |
0.000 |
|
|
|
Total (K) |
10.913 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
342.752 |
334.050 |
314.333 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
1462.777 |
803.565 |
443.831 |
|
|
TOTAL EARNINGS |
1462.777 |
803.565 |
443.831 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
629.011 |
297.288 |
260.619 |
|
|
TOTAL IMPORTS |
629.011 |
297.288 |
260.619 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
3.88 |
3.90 |
(5.58) |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2014 1st
Quarter |
30.09.2014 2st
Quarter |
|
Revenue |
|
643.190 |
557.780 |
|
Other Income |
|
9.660 |
0.680 |
|
Total Income |
|
652.850 |
558.460 |
|
Expenditure |
|
(621.130) |
(531.740) |
|
Interest |
|
(12.940) |
(13.630) |
|
PBDT |
|
18.780 |
13.090 |
|
Depreciation |
|
(6.660) |
(7.120) |
|
PBT |
|
12.120 |
5.970 |
|
Tax |
|
(5.940) |
1.990 |
|
Net Profit |
|
6.180 |
7.960 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
1.13 |
1.35 |
(4.12) |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
6.53 |
6.91 |
1.42 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.63 |
2.59 |
(5.09) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05 |
0.06 |
(0.10) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.07 |
0.83 |
0.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04 |
1.03 |
1.30 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
50.783 |
50.783 |
50.783 |
|
Reserves & Surplus |
394.607 |
414.324 |
428.026 |
|
Net worth |
445.390 |
465.107 |
478.809 |
|
|
|
|
|
|
long-term borrowings |
37.102 |
40.110 |
127.681 |
|
Short term borrowings |
227.094 |
344.048 |
384.442 |
|
Total borrowings |
264.196 |
384.158 |
512.123 |
|
Debt/Equity ratio |
0.593 |
0.826 |
1.070 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
684.108 |
1461.454 |
1730.102 |
|
|
|
113.629 |
18.382 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
684.108 |
1461.454 |
1730.102 |
|
Profit/Loss |
(28.183) |
19.717 |
19.615 |
|
|
(4.12%) |
1.35% |
1.13% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
Yes |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
OPERATIONS:
The company has achieved a turnover of Rs. 1730.000
Millions. The net revenue from operations for the current year was Rs. 1730.100
Millions (Rs. 1461.500 Millions) The Profit before tax was Rs. 21.600 Millions
as against a profit of Rs. 29.100 Millions during the financial year 2012-2013.
MANAGEMENT DISCUSSION AND ANALYSIS:
OVERALL MARKET
SCENARIO:
The financial year 2013-14 has been challenging for the entire economy. Economic growth declined across all sectors due to various domestic and external reasons. Industries across the realm had to tackle high inflations, growing interest rates, fluctuating foreign currency, increased price of raw materials and huge power costs.
Operational performance of the company: In this tough operating environment the company has sustained itself in terms of top line and has registered turnover of Rs. 1730.000 Millions. The company has conducted trial runs for Fipronil during the year.
In spite of sustainable operations and new initiatives, the company’s bottom line shrunk due to the external market forces. The increased price of raw material, growing interest rates and high inflationary trends had exerted pressure on the bottom line.
STRENGTHS:
With over 21 years of expertise in the manufacture of technical grade agrochemical active constituents and the State of Art manufacturing unit consisting of three production blocks with annual capacity of 3,250 Tonnes the company is well poised to advance to next level of operations.
Backed by highly competent R and D unit, the company is too adept to overcome the internal and external hurdles. Company’s R and D is in continuous look out for new effective and efficient cost effective production process and product development. The R and D unit is not only amenable to absorb the changes in business environments and develop new innovations, but is also able to minimize the time taken to convert an idea into innovation and thereby leading to its profitable commercialization
Prioritizing the manufacture of quality products, rational and effective use of available resources and minimization of waste has helped the company to maintain healthy organic growth. The company is an ISO 9001:2008 certified company. It constantly bench marks its operations against the best-in-class companies across the segment to identify the good practices and emerging thought leadership adds to long term value to the various stakeholders.
OPPORTUNITIES AHEAD:
India is one of the fast developing agrarian economies in Asia Pacific region with over 75 % of population dependent on Agriculture which is dependent on the four main factors viz: water, fertilizers, seed and pesticides. Over the XII five year plan period, the segment is expected to grow at 12% to 13% per annum with domestic demand growing at 8% to 9% per annum and export demand at 15% to 16% per annum
Though India has marked its place in the production, still its per capita consumption of pesticides is just 0.6 Kg per Hectare which is the lowest in the world. With the modernization of agriculture, the demand for high yielding quality of pesticide is bound to increase. Due to the current low per capita consumption of pesticides there is large room for multi-fold growth.
THREATS AND MEASURES
TO COMBAT THEM:
The company keeps constant watch on business climate competitions, legislations regarding environment and social concerns as well as the threats and business risks. The proactive management concentrates not on the cause of threats but on finding of cost efficient and effective solutions to what it perceives as potential threat.
a) Operational:
The prices of raw material continued to rise during the year. This frequent upward revision in the prices of raw material continues, it would mount further pressure on the bottom line. To overcome this, the company has been working strategically and has undertaken backward integration process to start production from the basic raw material for Azoxystrobin.
The uncertainty in power supply continues to pose major risk as the industry is power intensive. The company has installed sufficient diesel power generators and has entered into power purchase agreement with third party private power providers to assure uninterrupted power supply to the entire facility.
b) External threats:
The domestic industry is characterized by overcapacity, low capacity utilization and unsustainable levels of production from many units. Backed by highly efficient and competent R and D unit, the company aims to achieve optimal manufacturing process and substantial capacity improvement in plant.
With the increasing trend of low dosage, high potency molecules usage, the market for usage of high volume pesticides is expected to decline. And in order to overcome this threat, the company is focusing on R and D by laying greater emphasis on development of non-infringing alternate viable manufacturing process resulting in intellectual property development.
UNSECURED LOAN
|
Particular |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Sales Tax Deferment |
37.681 |
40.110 |
|
Short-term
borrowings |
|
|
|
Loan Repayable on
Demand - Un Secured |
|
|
|
State Bank of India - Bill Discounting |
22.482 |
84.067 |
|
Axis Bank Limited - Bill Discounting |
130.180 |
27.430 |
|
SBI Global Factors Ltd - Bill Discounting |
0.000 |
2.100 |
|
Total |
190.343 |
153.707 |
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2014 |
|
Estimated
amount of Contracts remaining to be executed on Capital account and not
provided for, net of advances |
5.008 |
|
Contingent Liabilities not provided for: |
|
|
Letters of Credit |
166.907 |
|
Bank Guarantees |
2.300 |
|
Total |
174.215 |
INDEX OF CHARGES:
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10544557 |
29/12/2014 |
100,000,000.00 |
BANK OF INDIA |
HYDERABAD MID CORPORATE BRANCH, AC GUARDS, HYDERABAD, TELANGANA - 500004, INDIA |
C41199035 |
|
2 |
10436795 |
17/06/2013 |
100,000,000.00 |
BANK OF INDIA |
HYDERABAD MID CORPORATE BRANCH, AC GUARDS, HYDERA |
B79592648 |
|
3 |
80015608 |
27/01/2014 * |
187,500,000.00 |
STATE BANK OF INDIA |
IFB, RAJ BHAVAN ROAD, NAVBHARAT CHAMBERS,, SOMAJI |
B97191399 |
|
4 |
90124396 |
04/04/2014 * |
210,000,000.00 |
6-3-879/B, GREENLANDS ROAD, |
6-3-879/B, GREENLANDS ROAD,, BEGUMPET, HYDERABAD, |
C03289956 |
* Date of charge modification
FIXED ASSETS:
· Land and Site Development
· Factory Building
· Plat and Equipments
· Electrical Installations
· Furniture and Fixture
· Office Equipment
· Computer
· Vehicle
· Software
· Technical Knowhow
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
|
1 |
Rs.95.57 |
|
Euro |
1 |
Rs.71.01 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
49 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.